Recreational vehicle maker reports drop in earnings and revenue
Winnebago Industries Inc.’s stock (WGO, +2.78%) experienced a 1.4% decline in premarket trading on Wednesday following disappointing first-quarter financial results. The company’s profit fell short of the FactSet consensus estimate, while its revenue surpassed expectations.
Earnings and Revenue Decline
During the first quarter, Winnebago’s earnings dropped by 57% to $25.8 million, or 78 cents a share, compared to $60.2 million, or $1.73 a share, in the year-ago period. Adjusted earnings per share were $1.06, missing the FactSet consensus estimate of $1.18.
Revenue Outperforms Analyst Expectations
Despite a 19.9% decrease in first-quarter revenue to $763 million, Winnebago managed to exceed the analyst expectation of $723.8 million.
Market Performance and Challenges
“The outdoor recreation market is largely performing in-line with near-term expectations, despite continued pressure from macro headwinds,” stated Winnebago. The company attributed the revenue drop primarily to a reduction in average selling price per unit due to product mix and targeted price reductions. However, this decline was partially offset by unit volume growth.
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